Which Statement Describes the Rate of Return Expected When Lending

question 37

Multiple Choice

Which statement describes the rate of return expected when lending funds to a firm as compared with the rate when lending to a reputable state?

• A) It must be lower because a lender to a firm cannot expect to not to be exposed to any risk.
• B) It must be higher because a lender to a state cannot expect not to be exposed to any risk.
• C) It must be lower because the term lengths will generally be shorter.
• D) It must be higher because a lender to a firm cannot expect not to be exposed to any risk.

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The process of organizing data, literature, or other information to facilitate easy retrieval or search.

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An organized method of storing documents or electronic records.

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The process of carefully examining or scrutinizing something or someone to ensure compliance with standards or to identify defects.